[Anonymous]

For the life of me, I cannot understand the overall concept if a yen/euro increase/decrease in regards to the US dollar. Am I putting too much emphasis on this? I know Econ is not as much as the others, percentage wise, but my luck….this will be the main source of questions and I won’t have a clue! Please HELP!

[italianCPA]

If you have a receivable in foreign currency and the foreign currency appreciates on the USD, you will have a gain.

On the other hand, if you have a payable in foreign currency and the foreign currency appreciates on the USD, you will have a loss.

Think about it, you have a loan in EUR for EUR 1million and it's on your books for $1.3m (EUR/USD=1.30). If the EUR appreciates and the exchange rate goes to EUR/USD=1.40, your liability just increased to $1.4m.

FAR - 7/26/10 - 95
AUD - 8/10/10 - 88
BEC - 8/31/10 - 88
REG - 10/15/10 - 95

[potatogun]

Think simply. AR = receiving something. If that thing is worth less you have a loss. If that thing you receive is worth more now, great!

If you have to give something away and that thing is worth more now; that sucks. It costs you more now. If it decreases in value; yay. My debt is cheaper.

FAR 92 - AUD 91 - REG 94 - BEC 86

[NcEric41]

Good example italian, right on the money

FAR 80
BEC 83
AUD 89
REG 80

[Oceanman]

bump bc great explanations by some quality posters

FAR-92
AUD-94
REG-87
BEC-(April)

[Author]

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